Shivashrit Foods Limited, a leading manufacturer and exporter of premium potato flakes, has launched its much-awaited Initial Public Offering (IPO) on the NSE SME platform. Established in 2017 and based in Aligarh, Uttar Pradesh, the company has steadily built its reputation in the B2B food industry and is now expanding into the B2C retail segment.

The IPO opened on August 22, 2025, and closed on August 26, 2025, receiving strong investor participation. On the final day of subscription, the IPO was subscribed 1.80 times, reflecting decent investor confidence despite cautious market sentiment.

IPO Structure and Details

The Shivashrit Foods IPO is a Book Built Issue with a total size of ₹70.03 crores. This includes:

• Fresh Issue of 43.16 lakh shares worth ₹61.29 crores.

• Offer for Sale (OFS) of 6.16 lakh shares worth ₹8.75 crores.

The price band for the IPO has been fixed between ₹135 and ₹142 per equity share. The lot size is 1,000 shares, and the minimum investment for retail investors is 2 lots (2,000 shares), which amounts to ₹2,84,000 at the upper end of the price band.

At the IPO price of ₹142 per share, the company’s market capitalisation is expected to be ₹259.42 crores.

IPO Timeline and Key Dates

• IPO Open Date: August 22, 2025

• IPO Close Date: August 26, 2025

• Allotment Finalisation: August 28, 2025

• Refunds Initiation: August 29, 2025

• Demat Transfer: August 30, 2025

• Listing Date (Tentative): September 1, 2025

The shares will be listed on the NSE SME platform, offering visibility and access to investors looking for high-growth small-cap companies.

Grey Market Premium (GMP)

As of the subscription period, the Grey Market Premium (GMP) for Shivashrit Foods IPO has remained at ₹0, which suggests muted speculative activity. This indicates that investors are relying more on the company’s fundamentals rather than grey market signals.

Anchor Investors

Prior to the IPO opening, Shivashrit Foods raised ₹19.92 crores from Anchor Investors by allotting 14,03,000 equity shares at ₹142 per share. The anchor book allocation shows confidence from institutional investors, which often sets the tone for retail participation.

Subscription Status

On the final day, the IPO was subscribed 1.80 times overall. The detailed subscription data highlights healthy demand across investor categories, although the majority of interest came from non-institutional investors and retail participation.

How to Check Allotment Status

Investors can check the Shivashrit Foods IPO allotment status on the registrar’s website (Maashitla Securities Pvt. Ltd.) after August 28, 2025. Steps include:

1. Visiting the IPO allotment status page.

2. Selecting Shivashrit Foods Limited IPO from the dropdown menu.

3. Entering application number, PAN, or DP Client ID.

4. Submitting details to view the allotment result.

Company Background and Business Model

Shivashrit Foods operates a modern potato processing facility in Aligarh, Uttar Pradesh. The company specialises in potato flakes production, supplying mainly to industrial clients in the food and snacks industry. Its products are in high demand among food manufacturers for use in instant snacks, bakery items, soups, and ready-to-eat meals.

The company follows a B2B business model, ensuring steady demand from established players in the food sector. However, recognising the growing demand for packaged food products in India, Shivashrit Foods is also expanding into the B2C retail segment via e-commerce platforms and direct-to-consumer channels. This diversification enhances revenue streams and reduces dependency on industrial demand cycles.

Objectives of the IPO

The net proceeds from the IPO will be used for the following purposes:

1. Capital Expenditure (₹26.30 crores): To finance the construction of new buildings, installation of potato flakes line machinery, boilers, effluent treatment plants, solar panels, and other assets under the Expansion Project.

2. Working Capital (₹19 crores): To meet the increased working capital needs for the expansion project.

3. General Corporate Purposes: For strengthening overall business operations, branding, and growth strategies.

Financials and Growth Outlook

While the detailed financials will be disclosed in the company’s Draft Red Herring Prospectus (DRHP), Shivashrit Foods has shown consistent growth since inception. With increasing demand for processed potato products both in India and abroad, the company is well-positioned to capitalise on this growing sector.

The global potato flakes market is expanding rapidly due to rising consumption of processed foods, changing lifestyles, and demand for convenient cooking solutions. With its strong production base in Uttar Pradesh and growing export footprint, Shivashrit Foods can tap into both domestic and international markets effectively.

Risks and Considerations

Investors should also consider certain risks before investing:

• Dependence on potato availability and price fluctuations.

• Competition from both domestic and international players.

• Volatility in raw material and logistics costs.

• Limited track record in the B2C segment, where brand-building will be critical.

Conclusion

The Shivashrit Foods IPO has attracted reasonable investor attention with an overall subscription of 1.80 times. With its strong foundation in the potato flakes industry, clear expansion strategy, and upcoming retail foray, the company has a promising growth outlook.

Investors seeking exposure to the processed food industry may find this IPO an interesting opportunity. However, since the Grey Market Premium remains at ₹0, listing gains may be limited, and the investment case will depend largely on the company’s long-term growth and execution of its expansion projects.

The Upcoming IPOs in this week and coming weeks are Amanta Healthcare, Rachit Paints, Abril Paper Tech, Sneha Organics, Sugs Lloyd, .

The Current active IPO are Anlon Healthcare, NIS Management, Sattva Engineering Construction, Globtier Infotech, Current Infraprojects, Vikran Engineering, Shivashrit Foods, Anondita Medicare, Classic Electrodes (India).

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.

Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst.